The 70-80% Rule: A General Guideline for Determining a Good Monthly Retirement Income

Retirement is an important phase in life that requires careful planning to ensure financial security. One of the key considerations when planning for retirement is determining a good monthly income. So, what is considered a good monthly retirement income?

The answer to this question depends on various factors, such as your lifestyle, location, and expenses. However, a general rule of thumb is to aim for a retirement income that replaces at least 70% to 80% of your pre-retirement income.

For example, if your pre-retirement income was $60,000 per year, you should aim for a retirement income of $42,000 to $48,000 per year or $3,500 to $4,000 per month. This amount will ensure that you can maintain your standard of living and cover your essential expenses in retirement.

To achieve this level of retirement income, you will need to have a solid retirement plan in place that includes a combination of retirement savings, Social Security benefits, and other sources of income such as rental income or part-time work.

In conclusion, a good monthly retirement income is one that provides financial security and allows you to maintain your standard of living in retirement. Aim for a retirement income that replaces at least 70% to 80% of your pre-retirement income, and work with a financial advisor to create a retirement plan that meets your specific needs and goals.